Strategic alliance
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Strategic alliances allow companies to achieve goals that single organizations cannot accomplish alone. They involve cooperative relationships between independent organizations to mutually benefit as long as it is economically viable. Alliances can help companies reduce costs, gain access to new technologies and markets, and improve research efforts. However, they also come with coordination challenges and less profitability than mergers. The document outlines the meaning, need, stages of formation, types, advantages, disadvantages and failure reasons for strategic alliances between organizations.
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Strategic alliance
This presentation is based on the topic of strategic alliance.
What is strategic alliance and how companies are availing it for the long term and short term benefits?
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Strategic alliance
This document discusses strategic alliances, which are agreements between two or more independent firms to cooperate and achieve common goals. It defines strategic alliances and their role in international markets. The document outlines the need for strategic alliances to add value, improve market access, and enhance strategic growth. It describes different types of alliances and models, and lists the stages in forming an alliance from conceptualization to implementation. The document discusses advantages like improved efficiency and access to new markets/technologies. Finally, it provides examples of strategic alliances between companies like Cisco/Polycom and Nokia/Microsoft.
strategic alliances
A strategic alliance is a formal agreement between two or more parties to pool resources to achieve common objectives while remaining independent. Partners contribute resources like products, distribution channels, manufacturing capability, funding, equipment, knowledge, expertise, or intellectual property. The aim is for synergy where the benefits of the alliance are greater than individual efforts. Examples of alliances include Starbucks partnering with Barnes & Noble and United Airlines to provide coffee in their stores and on flights, Apple partnering with CLEARWELL to develop an e-discovery platform for the iPad, and Hewlett-Packard providing technology for Disney's Mission: SPACE attraction.
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The document defines strategic alliances as cooperative agreements between two or more companies to share resources and achieve common business objectives while maintaining autonomy. Strategic alliances allow companies to access new markets and technologies, reduce risks, and gain competitive advantages. The document discusses the different types of strategic alliances including joint ventures, equity alliances, and non-equity alliances. It also covers the process of forming a strategic alliance and potential advantages and disadvantages.
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What is strategic alliance and how companies are availing it for the long term and short term benefits?
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Strategic alliance
- 2. CONTENTS MEANING NEED STAGES OF STRATEGIC ALLIANCE FORMATION TYPES ADVANTAGES DISADVANTAGES CONCLUSION
- 3. STRATEGIC ALLIANCE It is no longer an era in which a single company can dominate any technology or business by itself. The technology has become so advanced, and the markets so complex, that you simply can’t expect to be the best at the whole process any longer. - Fumio Sato , CEO, Toshiba Electronics
- 4. MEANING Strategic alliances are co-operative relationships between two or more independent organisations, designed to achieve mutually beneficial goals for as long as is economically viable Co-operation lies between M&A. Includes technology transfer, shared expenses and risk.
- 5. NEED FOR COMPANIES FOR STRATEGIC ALLIANCE Reduce costs through economies of scale or increased knowledge Increase access to new technology Inhibit competitors Enter new markets Reduce cycle time Improve research and development efforts Improve quality
- 7. TYPES
- 8. CONT...
- 9. ADVANTAGES Improve organization efficiency. Offer to access new market and technologies. Reduce the impact of risk. Help to build independent brands. Deals to heavy budget project.
- 10. FAILURE OF STRATEGIC ALLIANCE
- 11. DISADVANTAGES Less Profit. Co-ordination difficulties due to informal cooperation settings and highly costly dispute resolution. High Influence costs because of the absence of a formal hierarchy and administration within the strategic alliance. Culture difficulties
- 12. CONCLUSION